Published in Cloud

German enterprises look to the cloud to support intelligent ERP

by on12 August 2020


Enterprises in Germany are slowly adopting SAP’s S/4HANA database, with many companies looking for cloud-based infrastructure from service providers to support the intelligent ERP system, according to a new ISG report.

The 2020 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Report for Germany sees a rapid expansion of cloud-based infrastructure for SAP HANA in the country. Service providers are offering public cloud services for HANA, and most upcoming HANA projects in the country include the option of a cloud-based operating model.

ISG partner Andrea Spiegelhoff said the company which makes expensive, esoteric software which no one actually knows what it does, SAP itself is pushing the cloud trend through a clear commitment to a ‘cloud first’ strategy and its corresponding offerings, including the HANA Enterprise Cloud.

In many cases, German enterprises upgrading their SAP product lines are looking for service providers that support hybrid or multi-cloud environments, the report adds.

The use of the public cloud, however, requires a much higher degree of standardisation than many SAP installations have required in the past, the report says. Many service providers are using test beds and sandboxes to migrate their customers to new SAP products, with many customers reluctant to make a switch on their current production systems. In many cases, an upgrade to S/4HANA has increased performance requirements, including new automation functions.

Some German companies have hesitated to upgrade to S/4HANA because of the potential impact on not only individual applications but also on their entire system landscape, the report says.

As a result, many German mid-market companies are transitioning to new SAP products using a greenfield approach, instead of a complex upgrade, the report says. In some cases, other companies with complex SAP installations are also adopting a greenfield approach instead of going through a step-by-step upgrade.

In addition, the report sees German companies often struggling to keep up with the pace of innovation at SAP. With SAP offering continuous updates, service providers also need to keep up with the latest developments and proactively assess the SAP product roadmap.

The report sees the COVID-19 pandemic having a limited impact on current SAP projects in Germany. Many service providers are using remote workers to carry out projects, and they have generally been able to keep up with ongoing projects.


Last modified on 12 August 2020
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